A two-year high for BHP helped offset declines among several heavyweight stocks going ex-dividend this morning as the share market hit a new four-month high.
At lunchtime the ASX 200 was three points or 0.1% higher at 5442 as gains in gold +2.8%, metals & mining +1.2% and materials +1% outweighed falls in telecoms -2.1%, consumer staples -0.9% and energy -0.6% as TLS, WES and WPL traded without their dividends. BHP hit a high of $39.79, its best price since it commanded $40 in November 2011.
The XJO's mid-morning peak of 5455.5 was its highest point since the index hit 5457.3 in late October. A close above 5441.4 would be the ASX 200's strongest finish since June 2008.
The market surrendered most of its gains following a weak open on the Shanghai Composite, lately down 1.83%. Hong Kong's Hang Seng fell 1.09% and Japan's Nikkei added 0.36%. Emini Dow futures were recently ahead one point or less than 0.1%.
Crude oil futures bounced 34 cents this morning to US$102.54 a barrel. Spot gold was $5.40 weaker at US$1,320.70 an ounce. The dollar was buying 89.65 US cents.
China looks shaky this morning. Back home, the big miners have had pretty spectacular runs these last few weeks. Shorters must be starting to watch at these levels. Market as a whole looks ripe for a pullback, but who knows, perhaps the US will drive us through horizontal resistance and into clear air. I had a look at PBG this morning in expectation that the support would survive its first test. Jury still out on that. Also got some CAA at the low but not enough for a decent trade.
